my wc Information pertaining to Noskey Corporation's sales revenue follows: November 2021 (Actual) $ 180,000 360,000 December 2021 (Budgeted) $ 160,000 500,000 $ 660,000 January 2022 (Budgeted) $ 100,000 260,000 $ 360,000 Cash sales Credit sales Total sales $ 540,000 Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month's projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on-account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price. Required: Determine for Noskey: 1. Budgeted cash collections in December 2021 from November 2021 credit sales. 2. Budgeted total cash receipts in January 2022. 3. Budgeted total cash payments in December 2021 for inventory purchases.

my wc Information pertaining to Noskey Corporation's sales revenue follows: November 2021 (Actual) $ 180,000 360,000 December 2021 (Budgeted) $ 160,000 500,000 $ 660,000 January 2022 (Budgeted) $ 100,000 260,000 $ 360,000 Cash sales Credit sales Total sales $ 540,000 Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month's projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on-account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price. Required: Determine for Noskey: 1. Budgeted cash collections in December 2021 from November 2021 credit sales. 2. Budgeted total cash receipts in January 2022. 3. Budgeted total cash payments in December 2021 for inventory purchases.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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